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Spring 2007 OCMA News |
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Spring 2007 OCMA News |
SPRING 2007 OCMA NEWS
THE NEW DEMOCRATIC CONGRESS – THE GOOD, THE BAD, AND THE UGLY
As most everyone knows, the anti-war tsunami carried the Democratic Party to control of Congress for the first time since 1994. What many don’t know is the impact this significant development may have on business in general and the metal casting industry specifically. Members of the OCMA delegation to the AFS GAC meeting last month in Washington, DC received a good indication of changes forthcoming during the conference and trip to Capitol Hill.
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| The OCMA delegation at the AFS Government Affairs Conference
took a few moments from their rigorous preparation to have their photo
taken. The OCMA delegation members met with their Congressional leaders & staff
in nineteen (19) separate meetings during their day on Capitol Hill. Pictured
from left to right are:
Ken & Dave Seilkop, EPCOR Foundry, Suheb Haq, Barry Moore, Ted Engle (front), GM Powertrain-Defiance, Kim Bevington, Elyria Foundry Company, Jim Gary, GM Powertrain-Defiance (back), Dan Salek & Fred Corpuz, Foseco Metallurgical Inc., Chuck Fowler, Fairmount Minerals Ltd., Joe Muniza (rear), Ashland Performance Materials, Ryan Burke, OSCO Industries, Inc., Chuck Gilmore, Wellsville Foundry, Inc., OCMA Past President John Vaught, Tri-Cast, Ltd., OCMA Treasurer John Burke, OSCO Industries, Inc., OCMA Executive Director Russ Murray, Dave Yonto, The Quality Castings Company, and OCMA President George Deckebach, Miami-Cast, Inc. Missing from the photo were OCMA Vice President Jeff Otterstedt, Clow Water Systems, OCMA Secretary John Kurtz, Kurtz Bros., Inc., and Craig Holman, Columbus Steel Castings. . |
First of all, and most importantly, the change is not totally negative. In fact, for the first time in several years of voicing our industry’s concerns about the Chinese manipulation of their currency as well as other illegal trade practices, our delegation heard not only words of sympathy, but also, commitments to do something about it. After many of the members of the OCMA delegation voiced their disappointment in the lack of action on this issue during their visit to Ohio Senator George Voinovich’s office, they were less than thrilled with the staff response that they were still working on it. The next meeting of the delegation was with junior Senator Sherrod Brown’s Chief of Staff, Jay Heimbach, who listened intently, indicated this was a major issue for the new Democratic Congress, and then outlined numerous actions the Senator intends to take to address this compelling issue for U.S. manufacturers.
Interestingly, it would appear as if the new Democratic Congress’s focus upon the U.S./Chinese trade deficit and the impact upon jobs in the U.S. have pressured the Bush Administration to take actions that have been recommended for years. For example, on Friday, March 30, 2007, the U.S. Department of Commerce announced a decision to apply the U.S. anti-subsidy law to imports from China. This was the first time ever countervailing duties have been imposed on imports from a non-market economy. The decision altered a twenty-three (23) year old bipartisan policy. Although the initial duties are to be imposed upon high-gloss paper, trade officials say that future actions based upon the department’s new policy could lead to duties on imports of Chinese steel, plastics, machinery, textiles, and many other products imported to the U.S.
Additionally, it is believed that Secretary of Treasury Henry Paulson will be raising the issue of currency manipulation to a new level of importance during the upcoming meeting of top Chinese and American cabinet members to discuss strategic economic issues in Washington DC in May.
While the Democratic Congress promises more aggressive action on China trade issues, its social issue agenda will present abundant challenges to business and the Ohio metal casting industry. The Democratic Congress’s number one domestic goal is to enact H.R. 800, the so-called “Employee Free Choice Act” which has been introduced and passed in the U.S. House of Representatives. H.R. 800 would deny employees the fundamental democratic right to a secret ballot election administered by the National Labor Relations Board (NLRB) during a union recognition campaign. Instead, workers would be subject to a “card check” process, with the risk of public or private intimidation and coercion. This bill would surely lower the bar for union organizers and if passed would likely trigger union organizing drives throughout the country in all industries.
Importantly, under the Employee Free Choice Act, once workers decide to form a union and card check recognition is granted, the bill would impose compulsory binding arbitration on the workers and employer after only 120 days of contract negotiations. This would be an unprecedented government intrusion into the right to bargain freely over working terms and conditions. To repeat, under this bill, the government would impose a compulsory arbitration decision upon a company that has failed to reach an agreement with its new union in less than 120 days of bargaining.
The Democratic Congress also has its sights set on mandating certain fringe benefits through legislation rather than by collective bargaining or employer decision-making. Senator Ted Kennedy (D-Massachusetts), now the Chairman of the powerful Senate Health, Education, Labor & Pensions Committee has introduced and held hearings on a bill that would require employers with 15 or more employees to give full and part-time employees up to seven (7) days of paid sick leave. Presidential aspirant Senator Chris Dodds (D-Connecticut) has announced that he intends to introduce legislation that would amend the Family and Medical Leave Act (FMLA) to require employers to provide up to six (6) weeks of paid leave to care for themselves, their children and immediate family members.
Finally, with control of both houses of Congress, the Democrats become Chairpersons of all committees and subcommittees with the concomitant power. In addition to Senator Ted Kennedy, some of the more noteworthy chairpersons affecting business and manufacturing are outlined below:
U.S. Senate
Appropriations Committee – Chairman Robert Byrd, West Virginia
Environment & Public Works -- Chairwoman Barbara Boxer, California
Small Business & Entrepreneurship – Chairman John Kerry, Massachusetts
U.S. House of Representatives
Education & Labor – Chairman George Miller, California
Financial Services – Chairman Barney Frank, Massachusetts
Oversight & Government Reform – Chairman Henry Waxman, California
Ways & Means – Chairman Charles B. Rangel, New York
We are only four months into the new Democratic majority in Congress and it is much too early to tell what lies ahead. However, one thing is perfectly clear, business and industry will be playing defense on a number of issues that will affect their ability to compete in today’s global economy. Although the Democrats generally are sympathetic on the issues of trade, we are not on the same page when it comes to environmental regulations, labor issues, and taxes. Stay tuned.
OCMA Annual Foundry Tour
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| OCMA members prepare to enter the Clow Water Systems facility for a comprehensive tour. | It may look quiet from the outside, but inside the San CasT, Inc. facility can be likened to a beehive |
On Tuesday, April 17, 2007, eighty (80) representatives of OCMA member companies participated in a tour of Clow Water Systems and San CasT, Inc. in Coshocton. This was an historical day for OCMA. It was the first time we were ever able to offer two foundry tours on the same day and the first time ever that the maximum number of participants was reached. OCMA Executive Director Russ Murray was forced to send out an e-mail the week before the tour to alert our members that the maximum had been reached.
The history of Clow Water Systems dates back to 1878 when then 18-year-old William E. Clow founded James B. Clow & Sons, a large plumbing supply distributor in Chicago. The young William used his father’s name because he was concerned that he would not have the respect of his customers at such an early age. The foundry in Coshocton began casting in 1910 and became a prominent employer in the small town. Nearly 100 years later after continual reinvestment and technological improvements, Clow Water Systems is now one of the premiere manufacturers of iron pipe and fittings in the waterworks industry. A highlight of the Clow tour was the use of individual headphones and a team leader microphone that allowed for excellent communication despite the normal noise levels in the foundry.
San CasT, Inc. was founded in 1976 to cast parts for the railcar industry. More than thirty (30) years later, the company provides high quality ductile, gray acicular, and gray iron castings to a much broader customer base. Industries served now include rail, agricultural equipment, transportation, utilities, military, material handling, and energy.
The OCMA luncheon was held at The Olde Warehouse Restaurant in historic Roscoe Village and the food, service, and dessert wowed those attending.
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| It’s a full house at The Olde Warehouse Restaurant in historic Roscoe Village where the food, service, and apple crisp were outstanding! | |
A membership certificate was presented to Joe Korff, President, Quaker City Castings in Salem. Although Joe’s company had joined back in 2005, this was the first opportunity to present the membership certificate. OCMA President George Deckebach, Miami-Cast, Inc. also presented Iron Pourer Awards to OCMA Vice President Jeff Otterstedt, VP/General Manager, at Clow Water Systems and Don Hutchins, VP/General Manager, San CasT, Inc. for generously allowing OCMA members to tour their facilities.
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| San CasT, Inc. VP/General Manager Don Hutchins accepts an OCMA Iron Pourer from OCMA President George Deckebach, Miami-Cast, Inc. for co-hosting the 2007 OCMA Annual Tour | OCMA President George Deckebach, Miami-Cast, Inc. presents an OCMA Iron Pourer to OCMA Vice President Jeff Otterstedt, VP/General Manager, Clow Water Systems, for co-hosting the 2007 OCMA Annual Tour. | OCMA member Joe Korff, Quaker City Castings, accepts his OCMA membership certificate from OCMA Vice President Jeff Otterstedt, Clow Water Systems. |
Clow Water Systems Tour Guides: Jeff Otterstedt, Joe Carter, Gary Foster, Jim Loos, Keith Gildee, and Jerry Regula.
San CasT, Inc. Tour Guides: John Fox, Jim Kulbacki, Jim Scott, and Bob Snyder.
American Foundry Society (AFS) Government Affairs Conference (GAC)
It bears repeating that the OCMA delegation was the largest of any state represented at this year’s AFS Government Affairs Conference (GAC) in Washington, DC on March 28-30, 2007 and it wasn’t even close! OCMA members should be proud of their record of dedication and support of the national effort to educate our national leaders about the importance of the metal casting industry. This was a particularly important year with the Democrats taking over Congress so thanks to all who attended representing OCMA.
This year’s conference was highlighted by an insightful, haughty, and humorous political analysis by George Will, perhaps the most renowned conservative political analyst since William F. Buckley Jr. No matter what your political persuasion, you have to like George just because of his knowledge and adoration of American baseball. Also high on the list of highlights was a return visit to the Old Executive Building for a briefing from top government officials: John Duncan, Director of Policy for the Secretary of Commerce, Bill Greenwalt, US Deputy Undersecretary of Defense for Industrial Policy, and Bob Myers, USEPA, Associate Assistant Administrator for the Office of Air and Radiation.
Important issues discussed at the conference included trade and currency manipulation, the Employee Free Choice Act, potential expansion of the Family Medical Leave Act, and EnergySMARRT, a partnership between the U.S. metal casting industry and the U.S. Department of Energy. On Friday, OCMA alum Mike Lenahan, Resource Recovery Corporation, presented an update on progress in the beneficial reuse of foundry products arena.
As always, the most important task of the OCMA delegation was reserved for lobbying on Capitol Hill on Thursday, March 29, 2007. The OCMA delegates began their day with a 9:30 AM meeting with Senator Voinovich’s Chief Legal Counsel, Doug Dziak followed by a meeting with new Senator Sherrod Brown’s Chief of Staff, Jay Heimbach. An additional seventeen meetings were scheduled for a total of nineteen, the largest number of meetings for any of the AFS delegations. The last meeting scheduled was with new Representative Zack Space who took Rep. Bob Ney’s place in the 18th Congressional District. Although aside from trade issues, the OCMA delegates and Rep. Space agreed on very little, however, his answers were from his heart and he seemed to be telling the truth. What a refreshing turnabout.
The AFS GAC presents an opportunity to remind our Congressional Delegation of the importance of the metal casting to the manufacturing base in the state of Ohio. That’s why we need to maximize our participation and support to this event.
ENVIRONMENTAL UPDATE
OCMA Vice President for Environmental Affairs Dennis Baker, Flowserve Corporation, prepared an update on the discussions between the AFS GACT Working Group and the USEPA to present to the OCMA Board of Trustees at their meeting Tuesday morning, April 17, 2007. That update is presented below:
Generally Available Control Technology-Area Source Rules
• GACT will apply to area sources; those with a potential to emit less
than 10 tons/yr for a single HAP or less than 25 tons/yr for any combination
of HAPs. USEPA views area sources as important contributors of HAPs especially
in urban areas. The USEPA is operating under Section 112(k)(1) which states
that USEPA shall “achieve a substantial reduction in emissions of HAP
from area sources”. Section 112(k)(3) requires USEPA to prepare a national
strategy for urban air toxics. Foundries that are not covered by MACT
will be covered by GACT.
• Compliance dates
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Not later that 6 months after the date of publication of the final rule for the alternative compliance option |
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Not later than 3 years after the date of publication of the final rule for each applicable emissions limitation, operation and maintenance requirement |
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Not later than 1 year after the date of publication of the final rule for each applicable work practice requirement |
• Alternative Compliance Option
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Foundry has a metal melting rate permit capacity of 1000 tons per year or less for iron, 500 tons per year or less for steel |
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Need only comply with the Scrap Management program |
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Certify compliance to melting rate permit capacity |
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Maintain records to support certification |
• Scrap Management Program
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For each segregated metallic scrap storage area, bin or pile you must comply with one of the following options | ||
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Purchase and use only metal ingots, pig iron, slitter or other materials that do not contain | ||
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Post-consumer automotive body scrap, engine blocks, oil filters | ||
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Oily turnings, lead components, mercury switches, chlorinated plastics, or free organic liquids | ||
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General iron & steel scrap | ||
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Metallic scrap must be depleted (to the extent practicable) of the presence of used oil filters, chlorinated plastic, accessible lead containing components (batteries, lead wheel weights) and free liquids | ||
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Include in scrap specifications for the removal of mercury switches from vehicle bodies | ||
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Not applicable if you purchase scrap from dealer who participates in a mercury removal scrap program | ||
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Does not apply to specialty automotive scrap (stainless steel exhaust) and that the scrap is of the type that would not include mercury switches | ||
• Foundry Operations
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Existing Cupolas, EAF, and induction furnaces with a melt rate capacity greater than 5 tons / hr | |
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Must not discharge to the atmosphere emissions that exceed 0.8 pounds of PM per ton of metal melted or 0.06 pounds of total metal HAPs / ton of metal melted | |
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New sources: 0.3 lb/ton of PM or 0.02 lb/ton of total metal HAPs | |
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Cupola’s with a melt rate greater than 10 tons/hr or all new cupola sources must operate a combustion device for destruction of volatile organic HAPs (VOHAPs) | |
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Combustion device must have a residence time of 0.3 seconds or greater at 1,300 F or greater | |
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Wet scrubbers must maintain 3-hour average pressure drop and water flow rate at or above the minimum levels established during the initial or subsequent performance test | |
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Electrostatic precipitator must maintain the voltage & secondary current (or total power input) | |
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TEA cold box mold or core making line | |
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No discharge to atmosphere above 2 parts per million by volume or must reduce emissions by 98% | |
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Acid scrubbers must maintain the pH of the scrubber blowdown below 4.5 | |
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Combustion devices applied to emissions from TEA must maintain the 3-hour average combustion zone temperature at or above the minimum level established during the initial or subsequent performance test. | |
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Buildings and structures | |
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20% opacity limit (6 minute average) except one 6 minute average per hour may not exceed 27% opacity | |
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No methanol in Furan warm box | |
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Record annual quantity of each chemical
binder or coating material used and maintain MSDS sheets or other documentation
that provides the chemical composition of each component that will allow
calculation on the annual quantity of HAPs used in mold and core making
in the foundry.
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• Operation and Maintenance Requirements
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Must prepare and follow a written O & M plan for each control device used to comply with the requirements of this subpart | ||
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Plan minimum components | ||
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General facility and contact information | ||
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Positions responsible for inspecting, maintaining, and repairing emissions control devices | ||
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Information on baghouse system | ||
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Frequency of pressure drop readings and visual inspections | ||
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List of replacement parts that will be inventoried | ||
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Instructions on daily visual inspections for abnormal conditions | ||
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May use any other O&M plan that addresses the same requirements | ||
• Monitoring
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Requires continuous parameter monitoring system (CPMS) for | |
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Wet scrubbers, electrostatic precipitators, combustion devices | |
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Wet acid scrubbers require daily measure of pH | |
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Initial draft is requiring a bag leak detection system for all negative or positive pressure baghouses | |
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The committee is against this due to the high cost | |
• Performance Tests
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Must demonstrate initial compliance with the applicable emissions limits for each affected melt furnace or TEA cold box line |
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Can use previous testing if the test methods used are the same as for this rule |
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Have 180 days to demonstrate compliance if you have no previous testing |
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Recertify every 5 years |
• The next OCMA meeting will be held on Thursday, July 19, 2007, at the Columbus Convention Center. Manufacturing business owner and newly elected Ohio State Representative Ross McGregor (R-Springfield) has been invited to address the meeting and Waste Management, Inc. will be making a presentation concerning how to meet your regulatory obligations pertaining to waste management.
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